Banking Awareness Questions IBPS Clerk Mains Set 20

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Banking Awareness Questions IBPS Clerk Exam - Banking Awareness Quiz Questions Answers are providing for all banking exams and interviews in 2017 - 2018. These are some important Banking Awareness Questions and Answers pdf download free providing by our Banking Expert Team is useful for all banking exams and It is specially designed according to the Syllabus of RRB, IBPS/SBI PO, and Clerk VII 2017-2018.
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Banking Awareness Questions IBPS Clerk Mains

Q. 1. Which of the following Negotiable Instruments can be crossed to the banks ?
  • (1) Cheques
  • (2) Bills of Exchange
  • (3) Drafts
  • (4) All of above
  • (5) None of these
1. (2)

Q. 2. Which of the following assets are considered as near money ?
  • (1) Bond
  • (2) Equity Shares
  • (3) Time deposits
  • (4) Traveller's cheques
  • (5) All of above
2. (5) Bill of Exchange, bond, equity shares, saving deposit, with commercial banks, bankers acceptances, cash surrender values of life insurance policies, etc are examples or considered as near money

Q. 3. Which sector contributes most to the savings in India ?
  • (1) Public sector
  • (2) Private corporate sector
  • (3) Household sector
  • (4) Administrative sector
  • (5) None of these
3. (3) Household sector contributes most to the savings in India.

Q. 4. Which one of the following is not a function of Central Bank in a country ?
  • (1) Credit Control
  • (2) Managing Money Supply
  • (3) Credit Creation
  • (4) Regulation of Foreign Exchange
  • (5) None of these
4. (3) Creation of credit is a function performed by the commercial Banks in a country.

Q. 5. Which of the following would reduce the credit creation capacity of a Commercial Bank ?
  1. (A) Deposits with the Central Bank
  2. (B) Time and Demand deposits
  3. (C) Cash in hand
  • (1) A and C
  • (2) Only B
  • (3) A and B
  • (4) All A, B and C
  • (5) None of these
5. (1) Deposits with the Central Bank and cash in hand reduce the money available for credit creation.

Q. 6. Basel - II norms are associated with sector.
  • (1) Banking
  • (2) Insurance
  • (3) Share
  • (4) All of the above
  • (5) None of these
6. (1) Banking sector

Q. 7. Name any E-Banking service which is based on voice processing facility ?
  • (1) Any time banking
  • (2) Tele-banking
  • (3) On-line banking
  • (4) Any where banking
  • (5) None of these
7. (2)

Q. 8. The Reserve Bank of India placed the greatest reliance on which of the following measures of credit control for maintaining price stability during the last ten years ?
  • (1) The Bank Rate
  • (2) Open Market Operations
  • (3) Cash reserve requirements
  • (4) Statutory liquidity requirements
  • (5) None of these
8. (1) Frequent changes in the Bank rate leads to the expansion and contraction in the flow of money supply, that's why RBI placed the greatest reliance on the Bank rate during the last ten years.

Q. 9. Consider the following statements regarding the features of the Indian money market
  • (A) It finds avenues for profitable investment for short -term surplus
  • (B) It opens the door for the Commercial Banks to occupy a strategic position in regulating money market.
  • (C) It provides short- term funds for Banks.
Which of the statements given above is/are correct ?
  • (1) Only A
  • (2) Only B
  • (3) Aand C
  • (4) All A,B and C
  • (5) None of these
9. (3)

Q. 10. Which one of the following banks creates credit ?
  • (1) Reserve Bank of India
  • (2) Commercial Bank
  • (3) Industrial Banks
  • (4) Land Mortgage Banks
  • (5) None of these
10. (2) Commercial Banks on the basis of their primary deposits mainly creates credit.

Q. 11. Non-Performing assets of commercial banks means their loans .
  • (1) Fetching very low rate of Interests.
  • (2) For which interest/instalment has remained unpaid after due date.
  • (3) Given to sick industrial units .
  • (4) Have not been disbursed at all.
  • (5) None of these
11. (2) Non-performing assets of Commercial Banks means their loans for which interest/installment has remained unpaid after due date.

Q. 12. The largest Nationalized Commercial Bank in India at present is .
  • (1) Reserve Bank of India
  • (2) State Bank of India
  • (3) Central Bank of India
  • (4) Bank of India
  • (5) None of these
12. (2) The Largest Nationalised Commercial Bank in India is State Bank of India.

Q. 13. The definition of 'Banking' is given in .
  • (1) Negotiable Instrument Act. 1881.
  • (2) RBIAct, 1934
  • (3) The Banking Regulation Act, 1949
  • (4) The Indian Contract Act, 1872
  • (5) None of these
13. (3) The definition of Banking is given in the Banking Regulation Act, 1949.

Q. 14. The Bank rate policy is a component of
  • (1) Fiscal policy
  • (2) Monetary policy
  • (3) Trade policy
  • (4) Foreign policy
  • (5) None of these
14. (2) Bank rate policy is the component of Monetary policy.

Q. 15. Which of the following cannot be called as a value Added service offered by a Bank?
  • (1) Special accounts for poor sections of the society
  • (2) Accident insurance cover
  • (3) Instant Credits of Outstation Cheques
  • (4) Free cheque book
15. (4) Cheque Book is not a value added service offered by a bank.